Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 1: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the actions she has taken or plans to take to address the rising cost of consumer goods and services; and if she will make a statement on the matter. [24096/08]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I share the Deputy's concern about increases in the price of goods and services. The greater part of these increases reflect global trends over which the Government has little or no control. Approximately 60% of the rise in the consumer price index in the year to May 2008 was attributable to rises in the price of fuels, food and mortgage interest rates.

A comparison of our inflation performance with that of other EU member states underlines the extent to which rising prices here reflect international pressures. Official figures recently released by EUROSTAT show that, measured on a harmonised basis, our inflation rate of 3.7% in the year to May 2008 was identical to the average for the euro area and below the average of 3.9% for the European Union as a whole. Only three member states in the euro area and a further two member states outside the euro area had a lower annual inflation rate over this period.

While Government has little power to influence the main causes of recent increases in the price of food and fuel, I have taken action in areas where we can be in a position to exert some influence. In recent weeks, I have met separately with IBEC and leading members of Retail Ireland and have also written to major individual retailers to express the Government's concern at the apparent reluctance of the retail sector generally to pass on to consumers the benefit of the euro's appreciation against sterling. I was told at these meetings that, while the retail price of goods imported from the United Kingdom had lagged exchange rate movements due to factors such as the forward purchase of goods and currency, there had already been reductions in the price of some goods and further reductions were in the pipeline.

The consumer price index data for the month of May 2008 confirm that there have been modest reductions in the price of a number of goods, such as breakfast cereals and biscuits, known to have a significant UK import content. I intend to continue my engagement with the retail sector in the period ahead with a view to securing a satisfactory outcome for Irish consumers.

I have also met the National Consumer Agency on this issue. As a result of these discussions, the agency is undertaking further price surveys, including the survey published yesterday which compared the prices of a range of branded and own brand goods in the Republic and Northern Ireland. The findings of the survey amply demonstrate the need for a more competitive retail marketplace in the Republic. The publication of more regular and more comprehensive price information by the National Consumer Agency and a willingness by consumers to act on that information have a key role to play in the development of a more competitive marketplace.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Deputies will be aware of widespread consumer anger about the price of goods and the growing fear of those on tight budgets. While I am not on a particularly tight budget, I returned from my local Spar outlet the other day having paid almost €100 for a basket of goods which had very little in it. I appreciate the Minister earns €5,000 per week and probably has her driver do her shopping, but rising prices are beginning to hurt.

Yesterday, the National Consumer Agency published an interesting price survey which showed that when VAT and excise are excluded, Tesco own brand prices are 17% higher in the Republic than in the North, whereas the difference between branded items is 28%. While it may be possible to attribute the difference of 17% to higher operating costs in the Republic, one cannot justify a price differential of 28%. In the case of Dunnes Stores, own brand goods in the South cost 11% more than in the North, while branded items cost 31% more, indicating an unjustified mark-up of 20%.

Surveys carried out by political parties, newspapers and the National Consumer Agency have provided sufficient evidence of the problem. The time for analysis is over and the time for action is upon us. We know from the independent survey published by the National Consumer Agency that prices for branded goods are more or less the same across supermarkets. Does the Minister accept that her advice to shop around is rubbish?

The Minister's statement that she met representatives of Retail Ireland and IBEC indicates she met press officers or policy officers. Who did she meet from Tesco, Lidl and Dunnes Stores? When did she meet them and what did she say to them?

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

For the benefit of the Deputy, I do my own shopping. I hope the woman beside Deputy Varadkar will give him a slap for the comment he made.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Deputy Clune does not have a driver.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

She should at least consider doing so, especially in light of the findings of a recent survey showing that women work more than men. If I receive €5,000 per week, I would like to see the job I do because I do not receive that sum.

I take the issue of price increases seriously. It is also a serious issue for consumers and it was on that basis that I took action. I will continue to vigorously pursue issues of major importance to consumers. As Deputy Varadkar will be aware, many retailers in the Republic are involved in price tracking. Serious issues have arisen in comparative analyses between North and South and I will continue to pursue these vigorously.

I met the director general of IBEC and those within IBEC who are in charge of Retail Ireland. I then met Retail Ireland, which is made up of the largest retailers in the country as well as some small retailers. As the Deputy will be aware, Dunnes Stores is not part of Retail Ireland. I met the chief executive of Tesco as well as many other chief executives and those from the UK who made themselves available. I met senior management within all the groups. During our discussions both sides showed an appreciation that there are issues. We have seen modest reductions in some prices in recent weeks, as one would note if one tracked prices in newspaper articles or shops.

To ensure full transparency on the issue of the cost of doing business, I have asked Forfás to carry out a comparative analysis of the costs of business, North and South. This issue was raised by the retail companies. When one strips out most of the price differentials the National Consumer Agency found in the study it carried out on my behalf, one finds that the cost of doing business, North and South, is not necessarily an indicator of the real reasons.

The sterling differential must be passed on to consumers.

Equally, as a Deputy from a Border county, I wish to ensure that we have a strong retail sector in the South. It is incumbent on us all to ensure that happens and that people who are involved and working in that sector are assured of sustainable jobs. There is a need for a little patriotism in this country.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Go raibh maith agat, a Thánaiste. We are well over time on the question.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

That can only be done on the basis that prices in the South are made available.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Ceist a dó in ainm an Teachta Willie Penrose.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

On a brief supplementary——

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I am afraid we do not have time for it. I call Deputy Willie Penrose's question.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

——the Tánaiste stated she met Tesco and that she had not met Dunnes Stores. Did she meet Lidl, Aldi and Superquinn?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

The Deputy should allow the Chair to proceed with the business.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The representatives——

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

She did not meet them directly, did she?

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Not yet.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I have called Deputy——

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

For Deputy Varadkar's information——

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Tánaiste, I have called Ceist a dó.

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

——I contacted every retailer in Ireland in written form and I asked them to revert back to me privately, given that some of the information may be sensitive. I have received replies.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I would be obliged if both sides of the House would have regard to the Chair.